Complex Family Law Litigation with High Net Worth Couples

How Much Is The Marital Estate Worth?

In high net worth divorces, the first challenge is often determining the value of the couple's assets. These assets might include real estate properties, stocks and bonds, trusts, retirement accounts, business interests, intellectual property, and collectibles, among others. An accurate and fair valuation is crucial for an equitable division of assets. This often requires hiring expert witnesses, such as forensic accountants, business valuation professionals, and real estate appraisers. The division of assets is typically done according to state law, with community property states splitting the couple's assets 50/50, and equitable distribution states dividing them based on factors like each spouse's income and future earning potential. However, the division of assets can be more complicated for high net worth couples due to the sheer variety and complexity of the assets involved. The following is a guide to understand the divorce process with a high net worth family:

• Most high asset divorces take a long time to complete due to the size of the estate.
• Legal representation will be intensive and at a higher cost than a normal divorce.
• A party's way of life will need to be adjusted during the divorce and, potentially, after.
• One cannot excessively spend during any form of divorce.
• Tax implications will needed to be considered, and experts retained to value assets.

In some high net worth divorces, one spouse may try to hide assets to prevent them from being included in the division of assets. This can include moving money offshore, transferring assets to third parties, or creating complex financial structures to conceal assets. It's essential for the other spouse to be vigilant and to work with their attorney and forensic accountants to uncover any hidden assets.

Business Interests of High Net Worth Individuals

For couples with business interests, dividing these can be particularly complex. In some cases, one spouse may have started a business before the marriage, but the other spouse may have contributed to its growth during the marriage. In other cases, both spouses may have been actively involved in running the business. In these situations, determining the value of the business and how much each spouse is entitled to can be a contentious issue.

It's also important to consider the tax implications of dividing business interests. For example, if one spouse gets a larger share of the business, they may also be on the hook for more of the business's taxes. It's critical to have a clear understanding of these implications to avoid unexpected tax liabilities down the road.

Child Support, Alimony and Custody In High Net Worth Divorce Cases

For high net worth couples with children, child support and custody can be additional sources of contention. Child support is typically calculated based on each parent's income and the amount of time they spend with the child. However, for high net worth couples, determining income can be more complicated due to complex income streams, such as dividends, capital gains, and trust distributions. Moreover, custody arrangements can be more intricate due to the parents' travel schedules, multiple homes, and other unique considerations. If your monthly net income is in excess of $7,500, an additional analysis may be required determine how much you will be required to pay in child support to the other parent.

Spousal support, or alimony, is another issue that can be complex in high net worth divorces. The higher-earning spouse may be required to pay spousal support to the lower-earning spouse, based on factors like the length of the marriage, each spouse's income and assets, and their respective needs and ability to pay. However, determining the appropriate amount and duration of spousal support can be a contentious issue, particularly when the couple's assets and income streams are complex. Spousal support may be awarded in some cases in which a spouse has fault in the marriage, such adultery or domestic violence.

Privacy Concerns In High Net Worth Divorce Clients

High net worth couples often have a strong interest in keeping their divorce proceedings private, particularly if they are public figures or have high-profile businesses. However, divorce records are typically public, which can make it challenging to maintain privacy. One option for high net worth couples is to pursue a private divorce, in which the proceedings are kept confidential, and the records are sealed.  High net worth couples facing divorce have unique considerations that can make their family law litigation particularly complex. It's crucial for these couples to work with experienced legal counsel, financial experts, and other professionals to navigate these challenges effectively. With the right support, high net worth couples can achieve fair and equitable outcomes in their divorces, while also protecting their privacy and financial interests.

Call Wilson Whitaker Rynell at (972) 248-8080 for Help

High net worth individuals choose the attorneys of Wilson Whitaker Rynell for their experience and breadth of business knowledge. Our team of Dallas high net worth divorce attorneys will guide you through the legal process and achieve the results you deserve. To learn more about how we can help you protect your assets and resolve your divorce as quickly as possible, Contact Us to schedule an initial consultation.